Levitan and Inspector-General in Bankruptcy

This matter concerned an application by Mr Levitan to cancel an objection lodged by the Inspector-General in Bankruptcy. The dispute centred on whether Mr Levitan had intentionally failed to disclose a beneficial interest in certain South African properties to his trustee in bankruptcy. The decision was made by Deputy President Bernard McCabe.

The court was required to determine whether Mr Levitan had a beneficial interest in the Protea Glen properties, whether he intentionally provided false and misleading information to the trustee, and whether he failed to disclose a beneficial interest in any property. The court also considered whether the Inspector-General's decision to uphold the objection was justified.

Deputy President McCabe found that Mr Levitan had consciously decided not to disclose his interest in the Protea Glen properties. Despite Mr Levitan's argument that he no longer held a beneficial interest as the property had been conveyed to an associate, the court noted that the associate disavowed this claim, a South African High Court had declared the assets to be Mr Levitan's, and the properties were available to his trustees. Consequently, the court was satisfied that Mr Levitan remained the beneficial owner and had no reasonable excuse for his non-disclosure. The court also found that ground 8, alleging a failure to disclose a beneficial interest, was made out under s 149D(1)(n) of the Bankruptcy Act. As this was not a special ground, the court considered the purpose of the legislation, concluding that Mr Levitan had not been forthcoming about his assets and that his cooperation was still required.

The court affirmed the respondent's decision that grounds 2, 7, and 8 were made out, and as the objection could not be cancelled, the decision under review was affirmed.